SBA Provides Guidance on Monthly Form 1502 Filings

WASHINGTON — In a procedural notice the Small Business Administration provided guidance on the monthly Form 1502 reports that lenders must file on unpaid or unforgiven Paycheck Protection Program loans. The report is due on the 15th of each month or on the next business day after the 15th if it falls on a weekend or holiday. For this month only, SBA provided a two-day grace period, making the first monthly filing deadline Friday, July 17.

Lenders should continue filing monthly reports until their PPP loans are forgiven or repaid in full, SBA said. The procedural notice also includes newly added guidance on how lenders should report a canceled PPP loan on Form 1502.

Meanwhile, SBA reported that PPP loans now total 4.9 million amounting to $517.4 billion.

Groups Support Automatic Forgiveness for PPP Loans Under $150K

WASHINGTON — The American Bankers Association and Independent Community Bankers of America joined a broad coalition of nearly 150 trade associations and advocacy groups in strong support of a bipartisan bill that would expedite the forgiveness process for most borrowers who received loans through the Small Business Administration’s Paycheck Protection Program. Sponsored by Sens. Kevin Cramer (R-N.D.), Bob Menendez (D-N.J.), Thom Tillis (R-N.C.) and Kyrsten Sinema (D-Ariz.), the Paycheck Protection Program Small Business Forgiveness Act would allow PPP loans of $150,000 or less to be automatically forgiven once the borrower completes a one-page forgiveness document.

The bill is expected to ease the forgiveness process for approximately 86% of PPP borrowers, in addition to saving an estimated $7 billion and hours of paperwork, according to the groups. “This bipartisan legislation would ensure our nation’s small business owners can focus their time, energy, and resources back into their business and communities instead of allocating significant time and resources into completing complex forgiveness forms,” they noted.

Also last week the Indiana Bankers Association joined with a group of 50 other state bankers associations to submit a letter in support of the bill. “Banks of all sizes will continue to support their business customers and do their part to spur the economic recovery to come,” the associations wrote. “In order to help our nation’s smallest small businesses, we urge Congress to quickly pass the Paycheck Protection Program Small Business Forgiveness Act to provide necessary relief to millions of small businesses.”

ICBA Services Network Announces New Board of Directors Member

WASHINGTON — ICBA Services Network, the business services subsidiary of the Independent Community Bankers of America (ICBA), announced that Shon Myers, chairman, president and CEO of Farmers & Merchants Bank in Miamisburg, Ohio, was elected to the ICBA Services Network board of directors. 

“We are pleased to welcome Shon, a dedicated and passionate advocate for the community banking industry to the ICBA Services Network board,” ICBA Services Network Chairman Jack Hartings, chairman of The Peoples Bank Co. in Coldwater, Ohio said. “Shon’s exceptional leadership and unique perspective will be a great addition to the board as we serve ICBA’s mission to create and promote an environment where community banks flourish.”

In addition to his role as the head of Farmers & Merchants Bank and its holding company, F&M Bancorp, Myers is active in his community, and is a member of the Rotary International, the Miamisburg Municipal Trust Fund Finance Committee, and is vice president of the Miamisburg Community Foundation. He also is active in his state association and is a former chairman of the Community Bankers Association of Ohio.

Serving on the ICBA Services Network board of directors with Hartings and Meyers are Dennis Doyle, president of Great Midwest Bank, Brookfield, Wisconsin; Greg Deckard, president, chairman and CEO of State Bank Northwest, Spokane Valley, Washington; Alice Frazier, president and CEO of Bank of Charles Town, West Virginia; Barry Haugen, president of the Independent Community Banks of North Dakota, Bismarck, North Dakota; Rebeca Romero Rainey, president and CEO, ICBA, Washington, D.C.;  Marti Rodamaker, president and CEO of First Citizens Bank, Mason City, Iowa; and William West, president and CEO of Bank of Tampa, Florida.

FHFA Extends COVID-Related Loan Processing Flexibilities for Fannie Mae and Freddie Mac Customers Through August

WASHINGTON — The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend several loan origination flexibilities until August 31, 2020 to ensure continued support for borrowers during the COVID-19 national emergency. The flexibilities were set to expire on July 31, 2020. Extended flexibilities include:

Alternative appraisals on purchase and rate term refinance loans;
Alternative methods for documenting income and verifying employment before loan closing; and
Expanding the use of power of attorney and remoteonline notarizations to assist with loan closings

Fed Proposes Revisions to Capital Assessments, Stress Testing Reports

WASHINGTON — The Federal Reserve has announced temporary revisions to its Form FR Y-14A/Q/M, the Capital Assessments and Stress Testing Reports. The temporary revisions, which would collect data pertaining to certain aspects of the CARES Act, information on firm activity associated with various Federal Reserve lending facilities and information regarding emerging risks arising from the COVID-19 pandemic, apply to reports beginning with the July 31, 2020, or Sept. 30, 2020, as-of date.

Additionally, the Fed is seeking comments on a proposal to extend for three years, with revision, the FR Y-14A/Q/M reports to address questions related to the reporting of certain current expected credit loss and capital data, which would be applicable to reports beginning with the Dec. 31, 2020, as-of date. Comments on the proposal are due Sept. 8.

ICBA Independent Banker Ranks Grand River Bank as a Top Lender

GRANDVILLE, Mich — Grand River Bank has been recognized as a top community bank loan producer for 2020 by Independent Banker, the award-winning magazine of the Independent Community Bankers of America (ICBA) and the number-one source for community banking news. The ICBA studied 2019 FDIC data for portfolio composition, loan growth and asset quality to create their Top Lenders List. Based upon their evaluation, Grand River Bank ranked 15th among 3,855 similarly-sized community banks nationwide.

“Thanks to our outstanding team members and our commitment to excellence, our Bank has previously received national recognition for growth, loan portfolio quality, financial performance and safety and soundness,” said Pat Gill, Grand River Bank CEO. “We’re proud to once again be recognized, this time as one of the top-producing lenders in the country. We’re equally proud of our reputation as a trusted advisor to businesses and individuals across West Michigan.”

Peterson Appointed Vice Chair of WBA

MADISON, Wisc, — Daniel J. Peterson,President and CEO ofThe Stephenson National Bank and Trust (SNBT),has been appointed to theViceChair of the Board of Directors for the Wisconsin Bankers Association(WBA).The Wisconsin Bankers Association is the state’s largest financial industry trade association, representing nearly 235 commercial banks and savings institutions, their nearly 2,300 branch offices and 23,000 employees. Peterson will serve as the chair of the association in 2022-2023.

“Serving on the board of the WBA is such an honor. I’m proud to be a member of such a distinguished organization,” said Peterson. “I want to thank the WBA and its member banks for their support andIlook forward to continuing the work underway to ensure growth and stability in Wisconsin’s banking industry and the communities that we serve around the state.”Peterson has helda seat on the prestigious American Bankers Association Community Bankers Council. In addition, he is very active in community organizations and his volunteerism throughout the years has included: Chair of the Marinette County Industrial Development Corporation (MCIDC), board member of the Marinette County Association for Business and Industry, member of the Northern Anglers,Lake Michigan Fisheries Forum and board member of the M&M Great Lakes Sport Fisherman’s Club; Peshtigo Lions Club member, St. Thomas Aquinas Academy trustee, Goodwill Industries board member, St. Mary’s Total Board of Catholic Education president, and Marinette Catholic Central Foundation president.

A DePere native, Peterson has a bachelor’s degree in Business Administration from St. Norbert College. In addition, he has completed numerous professional courses through WBA, including the General Banking School, Commercial Lending School, and the Leadership Program. He also completed the rigorous Graduate School of Banking program at the University of Wisconsin-Madison. He previously served on the WBA Bank Execs Advisory Board and the Board for FIPCO (FinancialInstitution Products Corporation), a subsidiary of WBA.Peterson and his wife, Barb, live in Marinette. They have two grown sons and two daughters in-law with six grandchildren.

Minnesota Banks Ask Consumers to Deposit, Use Spare Change Due to Coin Shortages

EDEN PRARIE, Minn.,— It’s time to empty out your piggy banks to help small businesses. Minnesota banks are asking consumers to spend their small change or deposit it at their local bank as the pandemic-related shutdowns have created a critical slowdown of coin circulation nationwide.
When COVID-19 restrictions went into place and establishments like retail shops, bank branches, and laundromats—the typical places where coins enter society—closed, it significantly slowed the normal rate of coin circulation. Consumers migrated to shopping online or, if in person, used debit and credit cards more often to avoid physical contact. This meant the coins that businesses would have normally received in change were not being circulated back into the system.

“In the beginning of 2020, more than four billion coins were deposited, or recirculated, each month,” said Joe Witt, President/CEO of the Minnesota Bankers Association. “Those numbers dropped to less than two billion beginning in April.”

As businesses are reopening, demand from merchants to stock their coins at higher levels is increasing, but a large number of coins remain with consumers. This is creating a crucial issue because recirculated coins represent more than 80% of coin supply.

“There is adequate coin in the economy, however the slowed pace of circulation means that a sufficient amount of coins may not be readily available where needed,” said Witt. Many local banks have coin counting machines for their customers’ coin deposits, or you can ask if they are accepting rolled coins. Using exact change when making purchases will also help put more coins into circulation.

As of April 2020, the U.S. Treasury estimates that the total value of coins in circulation is $47.8 billion, up from $47.4 billion as of April 2019.
The Federal Reserve projects the gap between supply and demand between 2.3 to 3.5 billion coins each month through the end of 2020.